During the first month of operations, the following transactions occurred for Sheridan Inc.: Apr. 1 1 2 Invested cash of $8,000 and equipment of $6,500 in the company in exchange for common shares. Hired a secretary-receptionist at a monthly salary of $1,700. Paid office rent for the month, $850. Purchased architectural supplies on account from Halo Ltd., $1,700. 10 Completed blueprints on a carport and billed client $1,300. 13 Received $800 cash advance from a client for the design of a new home. 20 Received $2,500 for services performed for a client. 21 Received $600 from client in partial payment for work completed and billed on April 10. 23 Received April's telephone bill for $135; due May 15. (Hint: Use the Utilities Expense account for telep services.) Declared and paid $120 of dividends to shareholders. 27 Paid 50% ($850) of the amount owed to Halo Ltd. on account. (see April 3 transaction) 30 Paid secretary-receptionist for the month, $1,700. 30 Paid monthly income tax instalment, $100. Date Account Titles and Explanation Debit Credit Apr. 1 Cash 8,000 Equipment 6,500 (To record investment) Salaries Expense (Hired a secretary-receptionist) 1,700 K (To record salary) (To record payment of income tax)